How to Maximise your Holiday Let Income

Are you looking at trying to increase your holiday let income?

Delivering a wonderfully presented property and providing a great customer experience is a fantastic way to start to increasing revenue on your holiday home.

Following these simple steps can help you improve your holiday rental optimisation:

Increase your Holiday Let Income with an Optimal Property

According to Sykes' internal booking data, ‘Optimal Properties’ earn on average 25% more bookings and 15% more revenue.

It was identified that higher-earning properties have the following 5 attributes: 

1. Super Income Maximisation

Owners who opt in to our Super Income Maximisation pricing strategy can expect to see 42% more revenue from their holiday let and 44% more bookings than other pricing schemes.

The Super Income Maximisation option increases rental prices by up to 50% above the base price and reduces up to 20% below base price to try and capitalise on demand, with no more than 10% in low season.

How to calculate your holiday let yield

Understanding how to calculate property yields can help to determine whether or not your holiday let is a good investment. Simply use the following equation:

Our Holiday Let Income Calculator uses data to try and estimate how much you can earn from your holiday let with features such as these.

2. Flexible Short Breaks

Being flexible and accepting short breaks as well as long stays can be a great way to maximise your holiday rental income.

It may seem that accepting short breaks is going to take away from your more valuable week-long bookings, however this flexibility could help to attract guests throughout the year and fill the gaps in your calendar.

This gives people the option of getting away for the weekend, rather than just marketing to those looking for a week-long stay. Accepting short breaks and multiple bookings is an efficient way to help boost your holiday let occupancy rates.

3. Non-Owner Led Pricing

Pricing your holiday home is an important decision and one of the main deciding factors for your property's profit margins. Working with a professional holiday letting agent can help get the best return on investment for your holiday let.

Maximising your holiday let income with non-owner led pricing is one of the benefits of holiday let management with Sykes. Our industry-leading revenue management system constantly monitors and amends rental prices in order to capitalise on market trends and customer demand.

Owners that allow us to set their base price on their behalf can expect to generate more income from optima base prices, earning 26% revenue on average.

What is the average profit on a holiday let?

According to Sykes' holiday letting outlook report, UK holiday home owners earned an average income of £24,500 in 2023.

4. Multiple Bookings Per Week

Accepting more than one booking in any given week may help generate the most profits from your holiday let business.

This is a popular option for owners who accept short breaks, as flexible booking options can help attract year-round occupancy rates and may drive low season holiday let bookings.

Setting up a Google Business Profile can also be a great way to increase exposure and boost the booking potential of your property.

5. Accept Pets

Allowing pets is a simple way to try and increase your holiday let income, as data from our Holiday Letting Outlook Report 2023 suggests pet-friendly properties can earn an additional 15% in revenue.

Accepting pets opens you up to a wider audience. Around 1 in every 3 Sykes bookings include pets, and more than half of our properties welcome them.

There are some adjustments that you may need to make in order to accommodate pets, such as beds, feeding bowls, waste bags and maybe even a treat or two in your welcome pack.

Download the Sykes Owner App

Make running your holiday let easier by downloading the Sykes Owner App!

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Top Tips to Boost your Holiday Let Revenue

When looking to yield the highest profit from your holiday rental investment, there are a number of ways to help achieve this:

Add a Hot Tub

Purchasing a hot tub for your holiday let is a substantial investment, however it is one that is could be worth it in the long run.

Not only will offering a hot tub with your holiday let allow you to raise your rental rates, it could also bring in more bookings by making you stand out as being better than average.

According to the Sykes Staycation Index, our data shows that hot tubs are one of the most searched property features, making them a potentially wise investment that could help maximise your income.

Provide Strong Wi-Fi

With social media and streaming being so popular in the modern day, WiFi is expected to be offered as standard with a holiday let. Your income can increase by 55% just by offering WiFi - a simple and inexpensive way to try and increase your income from your holiday let.

One issue to be wary of is the quality of your WiFi. Having slow broadband is arguably worse than having no WiFi at all. It's important that your WiFi can handle having multiple devices connected to it, and is strong enough to allow everything from replying to emails to downloading and streaming films.

Install a Log Burner or Open Fire

There's nothing more welcoming than an open fire or a log burner, especially in the colder months. With there being a quieter demand for holiday cottages during winter, adding a log burner or an open fire is a great way to make your property stand out above the competition, and continue attracting bookings through the off-peak seasons.

How to Generate Year-Round Holiday Let Income

If you're looking to boost your holiday let profits with a consistent annual rental income, it's important to take certain factors into consideration such as your holiday home location, its unique features and choice of furnishings.

Choose your Location Carefully

Choosing the location of your holiday let is arguably the most important decision of your entire journey, as this will be one of the major factors in how successful you will be. It's vital that you choose a location that suits both you and your target audience.

When you are looking at where to buy a holiday let in the UK, it's wise to choose a location that is open for the entire year. Some of the popular seaside resorts in the UK shut down during the off-season, with local attractions, shops, bars and restaurants closed. If there is nothing attracting people to the area, this could significantly damage your income.

A sensible rule of thumb to follow is to choose a property that is within a maximum two-hour drive of a major town or city. This captures a vast group of people that are looking for a getaway that's not too far from home, and could really capitalise on popular demands for short breaks.

Install Features to Enhance Off-Season Bookings

If you want to attract bookings year-round, including unique features in your holiday let can be something to consider.

Including an open fire or wood-burning stove can be an effective way to bring in bookings during the winter. As well as this, make sure your cottage kitchen is fully equipped with all of the essential items to keep guests happy.

Sustainable Holiday Letting

Making eco-friendly choices for your holiday home can not only save the environment, but may also help drive your holiday let bookings due to popular consumer demand.

Investing in energy-efficient appliances and smart technology such as timer-controlled devices can also help save money in the long-term, especially if you are remotely managing your holiday let.

For more tips on how to run a sustainable holiday home, read our ultimate guide to eco-friendly holiday letting.

Furnishing your Holiday Let to Maximise Income

Decorating your holiday home with stylish, comfortable and functional items to suit your guests individual needs can help to stand out from the crowd.

Make Comfort the Priority

No matter how luxurious and well-located your property is, your guests' experience will likely be a negative one if they can't sleep or sit comfortably.

You may be able to economise with some items when furnishing your holiday let, however soft furnishings such as sofas, chairs and especially beds must be as comfortable as possible.

Take a look at our Tick Rating Guide for more information on how to furnish your holiday let.

Identify your Target Audience

Setting your property up to suit a certain party type could be a way of attracting more bookings, rather than fitting out your property to your own personal tastes.

Before furnishing your holiday let, do your research on the types of guests that visit the local area. This might include providing maps of popular dog-walking routes, nearby shops or information on family-friendly activities.

Knowing your target audience preferences will add a personal touch to your property, which can help earn positive guest reviews and generate repeat bookings.

Stand Out from the Rest

Although traditional holiday cottages are always popular, it can also pay to be different when it comes to holiday letting.

Whether your holiday itself is unique, or you choose to adopt different styles to help maximise return on investment, having a one-of-a-kind feature will help you stand out from the rest, instead of being a choice between a handful of similar properties.